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January - September 2012
Results
1
A I R P O R T S M O T O R W A Y S C O N S T R U C T I O N S E R V I C E S
INDEX
GENERAL OVERVIEW ....................................1 MOTORWAYS ...............................................2
Traffic performance ..................................2 Other important issues ..............................3 Contract awards .......................................3 Tenders ...................................................3 407-ETR ..................................................4
SERVICES ....................................................5 Businesses in Spain ..................................5 AMEY ......................................................5 Backlog ...................................................5
CONSTRUCTION ...........................................6 Backlog ...................................................6 Markets ...................................................6 Budimex ..................................................6 Webber ...................................................6 Other markets ..........................................6
AIRPORTS ...................................................7 Traffic performance ..................................7 Tariffs .....................................................7 Income statement ....................................8 Regulatory aspects ...................................8 Net debt ..................................................9 Bond issuance and refinancings .................9 Dividends ................................................9 Disposals .................................................9
CONSOLIDATED INCOME STATEMENT ......... 10 BALANCE SHEET AND OTHER MAGNITUDES . 12
Net consolidated debt ............................. 13 Corporate credit rating ............................ 13
APPENDIX I: SIGNIFICANT EVENTS ............. 14 Events after the close ............................. 15
APPENDIX II: PRINCIPAL CONTRACT AWARDS
................................................................ 16 APPENDIX III: EXCHANGE-RATE MOVEMENTS
................................................................ 17 Comparable information: Income statement analysis in like-for-like terms responds to the need to have an accurate picture of the performance of the underlying business. The principal adjustments made to achieve this comparable analysis is the elimination of fair-value adjustments (hedging, impairments and asset revaluations), Exchange-rate movements and changes to the consolidation perimeter.
*EBIT For the purposes of analysis, all the comments referring to EBIT are before impairments and disposals of fixed assets
GENERAL OVERVIEW
BUSINESS PERFORMANCE In the first nine months of 2012, the highlights were the significant increase in EBITDA at the principal
infrastructure assets, the bonds issued by Heathrow Holdings (formerly known as BAA) and the 407-ETR
as part of their long-term capital markets financing strategies and the refinancing of upcoming maturities
ahead of time. Some important long-term contracts were awarded during the period, such as Sheffield in
the Services division, and the East Extension of the 407-ETR in Motorways (consortium led by Cintra). In
Construction, the division was named in October 12th “Apparent Preferred Proposer” for the contract to
build the US-460 motorway in Virginia.
Tariff increases, traffic growth and cost-controls combined to boost EBITDA considerably, both at
Heathrow airport (+10.1%) and the 407-ETR (+9.2%), both in local currency terms [assets consolidated
by the equity method].
At the Motorways division, there were signs of recovery in America, with growth above the LTM average
in both the second and third quarters, especially in heavy traffic. In Europe, tariff increases partially offset
the reduced traffic.
The Services division saw significant sales growth (+6.6%), principally due to the growth in the UK.
At the Construction division, the trend seen in earlier quarters continued, with falls in domestic activity
offset by the growth in the international business, especially in Poland and the US.
On 17 August, Ferrovial announced the sale of 10.62% of Heathrow Holdings to Qatar Holding for
GBP478mn, subject to the approval of the EU competition authorities. On 23 April, was announced the
sale of Edinburgh Airport to GIP for GBP807.2mn, the proceeds of which were used to repay bank debt.
Heathrow Holdings paid GBP180mn of dividends during the period. The 407-ETR also paid dividends,
amounting to CAD263mn. Dividend contribution to Ferrovial from Airports and Toll roads totalled
EUR207mn. On 17 October the ETR 407 paid a dividend of CAD190mn.
At the close, the company’s net cash position excluding infrastructure projects was EUR898mn, after
making investments of EUR191mn and paying EUR203mn in dividends.
Revenues reached EUR5,563mn in the period, with EBITDA of EUR660mn (+10%).
FINANCINGS In 2012, the 407-ETR made two long-term bond issues for a combined CAD600mn, which enabled the
2014 maturity to be refinanced ahead of time. In April it issued CAD400mn at 4.19% maturing in 2042,
and in September CAD200mn at 3.98% maturing in 2052.
In 2012, Heathrow Holdings issued bonds worth in excess of GBP3bn as part of its long-term capital
markets financing strategy, including its first issuance in Swiss francs and another in Canadian dollars, as
well as a number of private placements.
Sep-12 Sep-11 Chg. (%) LfL (%)
Sep-12 Dec-11 Chg. (%)
Revenues 5,652.6 5,515.5 2.5 0.5
Construction Backlog 9,063 9,997 -9.3
EBITDA 659.5 598.1 10.3 8.6
Services Backlog 13,397 12,425 7.8
EBIT* 498.3 450.9 10.5 8.7
Net result 488.5 481.9 1.4 n.s.
Traffic Sep-12 Sep-11 Chg. (%)
Capex -626.4 8.2 n.s.
ETR 407 (VKT´ 000) 1,745,396 1,734,672 0.6
Chicago Skyway (ADT) 42,803 42,680 0.3
Indiana Toll Road (ADT) 27,749 27,441 1.1
Autema (ADT) 15,119 19,224 -21.4
Sep-12 Dec-11 Chg. (mn)
Ausol I (ADT) 13,420 14,812 -9.4
Net financial Debt -5,609.2 -5,170.9 -438
Ausol II (ADT) 14,694 16,087 -8.7 Net Debt Ex-Infrastructure Projects
898.4 906.6 -8
Heathrow (million pax.) 53.0 52.6 0.6
Results January-September 2012
2
MOTORWAYS
Sep-12 Sep-11 Chg (%) Like for
Like (%)
Revenues 293.4 300.3 -2.3 -3.5
EBITDA 226.9 222.8 1.8 0.4
EBITDA Margin 77.3% 74.2%
EBIT 178.3 179.8 -0.8 -2.1
EBIT Margin 60.8% 59.9%
Performance in the first nine months of the year was principally affected
at the revenue and EBITDA by the lack of any compensation account
payments in 2012 for the Spanish motorways R4 and Ocaña-La Roda
(EUR23mn in 2011), the reversal of VAT-related provisions in Autema
(EUR21mn) and traffic weakness, partially offset by tariff increases.
TRAFFIC PERFORMANCE
In Spain, traffic in the motorway corridors continued to decline, inter alia
due to:
The recession in Spain: the recovery that started in April 2009 peaked in
April 2010, followed by a period in which the economy drifted sideways
and then entered another recession in 2011 that continues in 2012.
The sharp increase in the price of fuel since the end of 2010 took petrol
and diesel prices to record highs in April this year.
The overall decline in traffic seen since the start of the crisis has led to a
considerable improvement in traffic conditions on the alternative (free)
routes.
Motorists’ unwillingness to pay tolls during a recession, accentuated in
recent quarters by the uncertainty generated concerning the Spanish
economy and the rise in employment.
The increase in VAT from 18% to 21% since 1 September has led to a
2.5% increase in the tariffs paid by motorway users.
Other particular circumstances that are having an impact on the Spanish
motorways’ growth are as follows:
At Ausol I, the reduction in the speed limit to 80kmph on the alternative
route (the N-340) helped to alleviate the speed of decline in traffic, while
the toll increase (+7.5%) implemented on 29 July had a negative impact
on the traffic (increase due to the cancellation of a compensation account
introduced in 1999).
At Autema, a new tariff regime came into effect in January which does
away with the subsidies to local users on the Sant Cugat-Terrassa
section. This motorway has a compensation mechanism that guarantees
the operating result, under an agreement dating back to 1999.
The other European motorways also suffered from the sharp increase in
the price of fuel. The price of petrol and diesel in Portugal and Ireland
also hit all-time highs in April
In Portugal, the modifications to the concession contract for the Norte
Litoral motorway eliminate the traffic risk, and the Algarve motorway
concession contract is in the process of being modified along similar lines.
Ireland: negative performance due to the deterioration in the economic
situation and the higher fuel prices at M4 & M3, once the ramp-up period
has come to an end.
Traffic (IMD) Revenues EBITDA EBITDA Margin
Full consolidation Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. (pbs)
Chicago Skyway 42,803 42,680 0.3% 41.2 36.6 12.3% 36.3 31.3 16.0% 88.2% 85.4% 277
Ausol I 13,420 14,812 -9.4%
Ausol II 14,694 16,087 -8.7%
Ausol
40.8 44.4 -7.9% 32.4 35.0 -7.5% 79.3% 78.9% 37
Autema* 15,119 19,224 -21.4% 64.8 60.7 6.7% 76.8 50.7 51.4% 118.6% 83.6% 3,505
Radial 4 6,015 7,242 -16.9% 11.8 27.4 -56.9% 5.2 20.5 -74.7% 43.9% 74.8% -3,098
Ocaña-La Roda 3,540 4,240 -16.5% 11.3 21.6 -47.6% 5.8 16.2 -64.5% 50.7% 74.7% -2,406
M4 25,625 26,066 -1.7% 16.1 16.1 -0.1% 11.1 11.0 0.8% 68.8% 68.2% 63
M3* 25,425 25,846 -1.6% 15.2 26.6 -43.0% 11.6 21.9 -47.0% 76.6% 82.5% -589
Euroscut Algarve
27.9 27.0 3.4% 24.1 23.3 3.5% 86.5% 86.4% 10
Euroscut Norte Litoral*
31.5 32.5 -3.2% 27.5 29.5 -6.7% 87.3% 90.5% -320
Azores 8,351 16.1 13.2 81.6%
Holding & Others 16.7 7.2 n.s. -17.0 -16.6 n.s.
Total
293.4 300.3 -2.3% 226.9 222.8 1.8% 77.3% 74.2% 312
Equity consolidated Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. (pbs)
ETR (VKT) 1,745,396 1,734,672 0.6% 425.2 362.4 17.3% 352.7 299.8 17.6% 82.9% 82.7% 20
Indiana Toll Road 27,749 27,441 1.1% 114.6 98.9 15.9% 93.4 81.2 15.1% 81.5% 82.1% -59
Ionian Roads 30,033 35,600 -15.6% 44.4 51.5 -13.8% 24.8 30.9 -19.9% 55.9% 60.1% -423
* Financial assets
Results January-September 2012
3
North America:
Q3'11 Q4'11 Q1'12 Q2'12 Q3'12
407 ETR (VKT) -0.4% -0.4% -0.6% 1.6% -0.1%
Chicago Skyway -7.6% -6.2% -0.7% 1.1% 0.4%
ITR Barrier -7.1% -6.2% 1.6% 3.8% 2.7%
ITR Ticket -3.0% 0.8% 2.0% 2.2% -1.6%
Traffic on the US motorways during the first nine months of the year, and
especially in the second and third quarters, outperformed the trend of the
last 12 months, supported by economic improvement and petrol prices
below their April highs.
Indiana: the motorway posted growth for the third consecutive quarter,
after the completion of the improvement and widening works and the
increase in the speed limit from 55mph to 70mph on one section. These
works have resulted in a significant increase in heavy vehicle traffic.
Chicago: the improving traffic trend already observed was confirmed,
seeing positive traffic growth in the second and third quarters of 2012 for
the first time since end-2009. Of particular note was the growth in heavy
vehicles (+15.9%).
OTHER IMPORTANT ISSUES
RADIAL 4
On 14 September, the Board of the Radial 4 motorway agreed to file for
creditor protection.
The Radial 4 project was directly affected by external factors
(substantially lower traffic than expected, overruns on expropriation
costs, economic crisis, etc.) that under current conditions are preventing
the concession to meet various payment commitments due to
expropriated landowners and financial entities. Important factors in taking
this decision were that the potential supports for the concession
envisaged in the legislation were not effectively implemented by the
contracting body.
In the light of all the above, the Board took the above-mentioned decision
– which was also legally binding - in the confidence that a solution would
be reached within the next few months.
The investment relating to this project is fully provisioned. There is not
expected to be any significant impact whatsoever on Ferrovial´s
accounts.
The net debt associated with this asset amounted to EUR575mn.
OCAÑA - LA RODA
The Ocaña-La Roda motorway filed for creditor protection on 19 October.
The investment relating to this project is fully provisioned. There is not
expected to be any significant impact whatsoever on the Ferrovial’s
accounts.
The net debt associated with this asset amounts to EUR524mn.
DIFFERENTIATION BETWEEN FINANCIAL ASSETS AND
INTANGIBLE ASSETS
In the application of IFRIC 12, concession contracts can be classified as
either intangible or financial assets. Contracts treated as financial assets
are those than include some revenue guarantee mechanism, and where
there is thus no traffic risk. In the case of Cintra, the concessions treated
as financial assets are the following: Autema, Norte Litoral and the M-3.
In the case of the North Litoral, the classification as a financial asset is
due to changes in the terms of the contract from shadow tolls to
availability payments.
CONTRACT AWARDS
Canada: 407 East Extension (availability payments)
Total investment CAD1,100 mn.
Spain: Autovia Purchena- Huercal Overa (availability payments)
Total investment approximately EUR145mn.
Cintra has acted as financial advisor on the US460 project, where a
consortium led by Ferrovial has been designated as “Apparent Preferred
Proposer”.
TENDERS
In spite of the uncertainty in the markets, there has been a slight
recovery in the development activities of public authorities in some of
Ferrovial’s international target markets.
In North America, Ferrovial is evaluating various different projects in
various States.
In Europe, the company is working on various projects.
In Spain, the new PITVI infrastructure plan confirms the government’s
intention to have the majority of its projects in the form of concessions.
The company is also studying projects in other markets such as Australia
and Latin America.
Results January-September 2012
4
407-ETR
Sep-12 Sep-11 Chg (%)
Revenues 546.8 502.1 8.9
EBITDA 453.5 415.4 9.2
EBITDA Margin 82.9% 82.7% EBIT 408.3 371.8 9.8
EBIT Margin 74.7% 74.0% Financial results -219.5 -238.7 8.0
EBT 188.8 133.1 41.8
Corporate income tax 53.8 32.7 -64.5
Net Income 135.0 100.4 34.5
Net Income attributable
to Ferrovial 58.4 43.4 34.4
Contribution to
Ferrovial equity accounted result (€)
35.4 24.5 44.5
Since Ferrovial’s disposal of 10% in 2010, the asset has been
consolidated by the equity method as a reflection of the size of the stake
held by Ferrovial (43%).
407-ETR made an equity-accounted contribution to Ferrovial of EUR35mn
after the annual depreciation of the goodwill generated on the sale of a
10% stake in 2010, which is being depreciated over the life of the asset.
TRAFFIC
Traffic performance, measured in kilometres travelled (VKT) increased
+0.6%, an improvement over the same period last year (-0.5%). This
was thanks to both an increase in the number of journeys (+0.1%) and
in the average distance travelled (+0.3%, 20.39km).
INCOME STATEMENT
407-ETR posted significant growth in both revenues (+8.9%) and EBITDA
(+9.2%) in local currency terms. This positive performance reflected a
combination of traffic growth and the tariff increases introduced on 1
February. Average revenues per journey increased by 8.7% compared
with the first nine months of 2011.
DIVIDENDS
CAD Mn 9M 2012 2011 Chg. %
Q1 87.5 82.5 +6.6 Q2 87.5 82.5 +6.6
Q3 87.5 82.5 +6.6
Q4 102.5
Total 262.5 350.0
Extraordinary 110.0
Total 262.5 460.0
On 17 October, 407-ETR announced a dividend payment of CAD190mn.
NET DEBT
407-ETR closed the quarter with net debt of CAD4,959mn.
The company has no significant debt maturities until 2015 (CAD500mn).
DEBT ISSUANCES
On 6 September, 407-ETR issued a bond for CAD200mn, with a 3.98%
coupon and maturing in 2052.
In April 2012, the concession issued CAD400mn with a 4.19% coupon
and maturing in April 2042, which enabled it to refinance its 2014
maturity ahead of time.
CREDIT RATING
407-ETR is rated A, with Stable Outlook by Standard & Poor’s.
407-ETR TARIFFS
The following table compares the 2011 and 2012 tariffs. The tariff
increase was introduced on 1 February 2012.
CAD 2012 2011
Regular Zone Peak Period Monday-Friday: 6am-7am, 9am-10am, 3pm-4pm, 6pm-7pm
Peak Hours Monday-Friday: 7am-9am (2010: 7.30am-8.30am), 4pm-6pm
24.20¢ /km
25.20¢ /km
22.75¢ /km
22.95¢ /km
Light Zone Peak Period Monday-Friday: 6am-7am, 9am-10am, 3pm-4pm, 6pm-7pm Peak Hours Monday-Friday: 7am-9am, 4pm-6pm
22.60¢ /km
23.55¢ /km
21.25¢ /km
21.45¢ /km
Midday Rate Weekdays 10am-3pm
21.00¢/km 19.35¢/km
Off Peak Rate Weekdays 7pm-6am, Weekends & public holidays
19.35¢/km 19.35¢/km
Transponder: Monthly rental $3.00 $2.75
Transponder: Annual rental $21.50 $21.50
Video toll per journey $3.80 $3.65
Cargo per journey (This is not a charge per km.) $0.60 $0.50
Results January-September 2012
5
SERVICES
Sep-12 Sep-11 Chg.(%) LfL (%)
Revenues 2,204.1 2,068.1 6.6 3.0
EBITDA 216.3 208.4 3.8 0.7
EBITDA Margin 9.8% 10.1%
EBIT 135.8 130.1 4.4 0.3
EBIT Margin 6.2% 6.3%
Backlog* 13,396.8 12,424.7 7.8 5.3
* Backlogs compared with December 2011
In comparable terms, Services reported revenue growth of +3.0%, and a
slight increase at the EBITDA (+0.7%) and EBIT (+0.3%) levels.
The revenue growth was generated in the UK (+12.2%), while in Spain
the declining trend seen in previous quarters continued as a
consequences of the difficult economic environment (revenues fell by
5.0%).
BUSINESSES IN SPAIN
Sep-12 Sep-11 Chg. (%)
Revenues 1,086.4 1,144.2 -5.0
EBITDA 138.3 138.4 -0.1
EBITDA Margin 12.7% 12.1% EBIT 70.9 72.0 -1.5
EBIT Margin 6.5% 6.3% Backlog* 5,725.3 6,172.1 -7.2
Revenues -5.0%, EBITDA -0.1% and EBIT -1.5%, in line with the
company’s expectations.
In the Waste Collection and Treatment business, the economic slowdown
was reflected in a contraction in the tonnes of industrial waste processed
(-15%). There was also a fall in revenues due to cuts in services by some
municipalities, as well as the termination or non-renewal of contracts with
low returns or experiencing payment problems.
The Infrastructure Maintenance business generated lower revenues due
to the company’s strategy of contract selection with the objective of
controlling investment in working capital and protecting returns on the
portfolio in a scenario of increasing competition. In some contracts, there
was a significant negative impact from cuts in services required by clients
due to budget cuts, principally in terms of highway maintenance.
In spite of the fall in revenues, the EBITDA and EBIT margins were higher
than in 2011 thanks to cost-controls and the active management of the
quality of the backlog.
AMEY
Sep-12 Sep-11 Chg.(%) LfL (%)
Revenues 1,117.7 924.0 21.0 12.2
EBITDA 77.9 70.0 11.4 3.3
EBITDA Margin 7.0% 7.6%
EBIT 64.9 58.1 11.8 3.7
EBIT Margin 5.8% 6.3%
Backlog* 7,671.5 6,252.6 22.7 17.0
Revenues increased in comparable terms (+12.2%) as a reflection of
various contracts coming into operation, in particular the prisoner
transport and custody contracted awarded to the company in 2011, which
made a contribution of EUR41mn. The rest of the growth was driven by
higher turnover from existing contracts, in particular the highway
maintenance for Area 9 and the London Area for additional work arising
from the Olympic Games, works completed in the first semester.
EBITDA (+3.3%) and EBIT (+3.7%) increase in comparable terms thanks
to the higher execution of backlog. Growth in profitability was lower than
revenues principally due to non-recurrent profits generated in 2011 on
the sale of machinery and costs related to the initiation of contracts in
2012.
BACKLOG
The backlog reached EUR13,397mn (+5.3% vs. December 2011).
Once the financial closure of the Sheffield (UK) contract had been
achieved, this contract was included in the backlog. The Sheffield contract
is for services worth approximately GBP1,400mn (nominal).
In Spain, the company was awarded two waste treatment plants in the
Canary Islands, the renewal for eight years of a contract for urban waste
collection and highway cleaning for San Vicente de Raspeig, a one-year
renewal of a green space cleaning and maintenance contract for 10
districts of Madrid, a three-year maintenance contract for various State
highways, and a four-year contract for Call Centre for the Madrid Town
Hall.
Results January-September 2012
6
CONSTRUCTION
Sep-12 Sep-11 Chg. % Like-for-Like
(%)
Revenues 3,168.7 3,143.8 0.8 -0.3
EBITDA 240.7 171.4 40.4 37.0
EBITDA Margin 7.6% 5.5%
EBIT 210.5 147.4 42.8 39.1
EBIT Margin 6.6% 4.7%
Backlog* 9,062.9 9,997.2 -9.3 -11.3
* Backlogs compared with December 2011
Revenues increased by 0.8% in the first nine months of the year,
maintaining the same dynamic of the past few years: a significant drop in
activity in Spain, offset by strong growth internationally. Eliminating the
FX effect, revenues would have fallen 0.3% vs. last year.
EBITDA increased 37% to EUR241mn, principally due to the
regularization of provisions for finalised works and the positive
performance of other markets.
BACKLOG
Sep-12 Dec-11 Chg. %
Civil work 7,118.0 7,602.4 -6.4
Residential work 274.9 363.7 -24.4
Non-residential work 978.2 1,334.8 -26.7
Industrial 691.9 696.3 -0.6
Total 9,062.9 9,997.2 -9.3
The backlog contracted 9.3% vs. December 2011, due to a combination
of contract execution, the inclusion of important international civil works
projects such as the contract for the construction of the 407-ETR East
Extension in Canada and the slower rate of new contract awards.
The backlog does not include the recently awarded contract in the State
of Virginia (“Apparent Preferred Proposer” status), worth USD1,396mn
(100%) for a four-lane toll motorway between the cities of Petersburg
and Suffolk. Ferrovial’s capacity to develop complex projects, such as the
LBJ and NTE motorways in Texas, is positioning the company as a good
reference in the USA.
The international backlog amounts to EUR6,255mn, very much bigger
than the domestic backlog (EUR2,807mn). The domestic backlog
contracted by 12%, principally due to the fall in public sector tenders in
Spain (-45% to August).
MARKETS
The Construction division restructured its internal managing structure,
with the object of adapting itself to the new market reality. Budimex and
Webber continue to report directly, while Spain no longer reports
separately and its activities are included with the other markets.
BUDIMEX
Sep-12 Sep-11 Chg. % Like-for-Like
(%)
Revenues 1,096.6 934.9 17.3 21.7
EBITDA 45.7 52.9 -13.5 -9.9
EBITDA Margin 4.2% 5.7%
EBIT 36.2 47.6 -24.1 -20.9
EBIT Margin 3.3% 5.1%
Backlog* 1,545.2 1,919.7 -19.5 -25.8
Significant revenue growth due to execution of some high-volume
contracts and better weather conditions. Like for Like variation without
excluding PNI.
The backlog reached EUR1,545mn, 25.8% below 2011.
WEBBER
Sep-12 Sep-11 Chg. % Like-for-Like
(%)
Revenues 425.4 307.4 38.4 25.5
EBITDA 16.5 12.3 33.9 19.9
EBITDA Margin 3.9% 4.0%
EBIT 12.8 8.0 59.3 41.8
EBIT Margin 3.0% 2.6%
Backlog* 1,460.0 1,650.6 -11.5 -12.1
Strong revenue growth in local currency terms (+26%), reflecting the
start of contracts awarded last year and the higher level of execution of
the “managed lanes”. In euro terms, revenue growth reached +38% due
to euro weakness against the US dollar.
OTHER MARKETS
Sep-12 Sep-11 Chg. % Like-for-Like
(%)
Revenues 1,646.8 1,901.6 -13.4 -15.1
EBITDA 178.5 106.3 67.9 60.5
EBITDA Margin 10.8% 5.6%
EBIT 161.6 91.8 76.1 67.3
EBIT Margin 9.8% 4.8%
Backlog* 6,057.7 6,426.9 -5.7
Revenues declined, principally due to the performance of the domestic
market (-29%). The works related to the new motorways in Texas
continued to make good progress. The improved returns was principally
down to the reversal of provisions on the finalisation of projects not being
offset by the start of new projects.
Results January-September 2012
7
AIRPORTS
On 15 October, it was announced that BAA brand would no longer be of
use, being replaced by Heathrow Holdings. There are various reasons for
this change, including the fact that Heathrow will represent 95% of the
old group once Stansted has been sold.
On 17 August, Ferrovial announced the sale of 10.62% of the group to
Qatar Holding, subject to the approval of the European competition
authorities.
The division contributed EUR274mn to Ferrovial in the form of equity-
accounted profits, including the capital gain on the sale of Edinburgh
Airport (EUR100mn), the positive impact of the reduction in the tax rate
(EUR90mn) and EUR123mn for marking to market its derivatives
portfolio.
TRAFFIC PERFORMANCE
Traffic in the first nine months of 2012:
Heathrow (+0.6%) handled 53.0 million passengers. The underlying
traffic growth was positive and the number of passengers was a new high
during the first nine months of a year. In July and August, traffic was
400,000 passengers less than in the previous year, due to the Olympic
Games: British travellers preferred not to travel and to stay and enjoy this
important event, while international travellers preferred to avoid any
possible delays caused by the Games. In September, traffic got back to
normal, with a new record for September traffic.
By destination, the North Atlantic saw the strongest growth (+3.9%), and
there was significant growth in passenger numbers heading for Brazil, the
Middle East and the Far East. Domestic traffic improved sligihtly (+0.1%),
European traffic fell slightly (-0.4%), principally due to the impact of the
Olympic Games.
Traffic at Stansted fell (-4.6%), and the number of regular flights to
Europe declined by 1.8%. Year to date, Stansted continues to post the
highest load factors (81.1%), which suggests a limited deterioration in
the dynamics of demand.
Traffic growth by destination:
2012 2011 Chg. %
UK 12.7 12.8 -1.1%
Europe 34.4 34.4 -0.1%
Long Haul 28.7 28.5 0.8%
Total 75.8 75.7 0.0%
TARIFFS
The increases in the maximum aeronautical tariffs applicable in the 2012-
13 fiscal year came into force on 1 April 2012.
The following table sets out the tariff increases for 2011 and 2012:
2012 2011 Regulation
Heathrow +12.7% +12.2% RPI+7.5%
Stansted +6.8% +6.3% RPI+1.63%
The tariffs that come into force on 1 April 2013 will be based on the rate
of inflation in August 2012, which was 2.9%.The tariff increases will be
10.4% and 4.5% at Heathrow and Stansted respectively.
GBP Traffic Revenues EBITDA EBITDA Margin
Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. (bps)
Heathrow 53.0 52.6 0.6% 1,574 1,442 9.2% 799 725 10.2% 50.8% 50.3% 50
Heathrow express
135 130 4.1% 48 45 7.8% 35.9% 34.6% 124
Heathrow total 53.0 52.6 0.6% 1,709 1,571 8.7% 847 770 10.1% 49.6% 49.0% 62
Stansted 13.5 14.1 -4.6% 185 181 2.2% 75 73 3.4% 40.5% 40.0% 45
Regulated airports 66.4 66.7 -0.5% 1,894 1,752 8.1% 922 842 9.5% 48.7% 48.1% 65
Edinburgh*
42 41 4.0% 17 16 2.4% 39.2% 39.8% -59
Glasgow 5.5 5.3 4.1% 66 63 5.0% 25 24 1.8% 37.5% 38.7% -120
Aberdeen 2.5 2.3 8.9% 43 39 9.5% 16 14 15.6% 37.6% 35.6% 199
Scottish airports 8.1 7.6 5.5% 152 143 5.9% 58 55 5.5% 38.0% 38.2% -16
Southampton 1.3 1.4 -4.5% 20 21 -4.6% 6 8 -19.4% 31.9% 37.7% -582
Holding & adl.
-76 -71 11 3 Total (LfL) 75.8 75.7 0.0% 1,990 1,846 7.8% 997 908 9.9% 50.1% 49.2% 94
Perimeter changes
42
48
Total 75.8 75.7 0.0% 1,990 1,888 5.4% 997 956 4.3% 50.1% 50.6% -52
*Until May
Results January-September 2012
8
INCOME STATEMENT
GBP Sep-12 Sep-11 Chg. % LfL
(%)
Revenues 1,990.0 1,887.9 5.4 7.8
EBITDA 997.3 955.9 4.3 9.9
EBITDA margin % 50.1% 50.6%
Depreciation 439.4 454.4 -3.3
EBIT 557.8 501.5 11.2 16.7
EBIT margin % 28.0% 26.6%
Impairment 163.2
Financial results -368.2 -734.5 49.9 6.1
EBT 352.9 -232.9 251.5 63.7
Corporate income tax 91.5 219.0 -58.2 -87.2
Net income (100%) 444.5 -13.9 n.s. 56.2
Net income €(49,99%%)
273.9 -8.9 n.s. 56.2
Revenue growth reached 7.8% and EBITDA growth 9.9%, supported by:
GBP Sep-12 Sep-11 LfL (%)
Aeronautic 1,151.5 1,046.8 10.0
Retail 451.9 432.9 4.4
Others 386.7 366.5 5.5
TOTAL 1,990.0 1,846.2 7.8
Aeronautical Retail Other
GBP Sep-12 LfL
(%) Sep-12 LfL
(%) Sep-12 LfL
(%)
Heathrow 955.2 11.2 338.4 5.8 415.0 5.7
Stansted 102.1 4.3 63.1 -3.0 20.0 9.8
Glasgow 34.2 4.9 21.1 7.3 10.9 1.3
Edinburgh 23.0 4.7 13.7 1.8 5.8 0.0
Aberdeen 24.8 7.9 8.5 14.2 9.8 9.5
Southampton 12.2 -2.9 6.0 -10.4 1.8 5.5
Other &
adjustments 0.0
1.1 68.7 -76.7 7.2
Total airports 1,151.5 10.0 451.9 4.4 386.7 5.5
Aeronautical revenues rose +10.0% on the growth at Heathrow based
on: traffic +0.6%, Tariff +12.7% since April 2012. However, this increase
was partially offset by lower real tariff earnings as a reflection of the
different traffic mix (more passengers in transit and lower aircraft parking
revenues) of around GBP25mn that will be recovered through the
adjustment mechanism (the K factor) in the next financial year (2013-14).
At Stansted, the fall in traffic (-4.6%) was mitigated by the tariff
increases in April 2012 (+6.8%).
Retail revenues (+4.4%). Retail revenues continued to show growth,
continuing the trend seen in previous years.
At Heathrow, gross retail revenues increased +5.8% and the net
revenues per passenger by +4.8% (+8.9% at Q3) to reach GBP6.04 per
passenger. This significant growth was largely due to the to higher sales
in the Duty Free shops, the airside retail spaces, the FX offices and in the
car parks.
Sales in the Duty Free shops and the airside retail spaces were very
positive thanks to the higher number of non-European travellers, the new
retail spaces in Terminal 3, including the new walk through in World Duty
Free, as well as the success of the luxury and fashion stores. The
increased sales in the FX offices are explained by the combination of a
higher number of passengers and improvements in the terms of the
retailers’ contracts. It is also important to note that the increasein
restaurant revenues after the improvement in the offering with new
Premium establishments and a general improvement in quality and
service levels. The Olympic Games had a positive impact on advertising
revenues.
At Stansted, gross retail earnings fell (-3.0%), but the net spending per
passenger increased by 2.5%.
Other revenues rose +5.5% on higher rail revenues (+7.8%) as a
reflection of an increase in fares.
REGULATORY ASPECTS
TARIFFS FOR THE NEXT FIVE-YEAR PERIOD (Q6)
On 30 July, Heathrow announced its initial business plan for the next
regulatory period (Q6), which starts in April 2014, to both the CAA and
the other interested parties.
The CAA’s formal consultation process on tariff regulation is expected to
begin at the beginning of 2013, once the “constructive engagement
process” is completed. Heathrow will publish its definitive business plan in
January 2013. The CAA’s final tariffs proposals are expected to be
published in September 2013, with the final decision taken on them in
January 2014.
REGULATORY ASSET BASE (RAB)
GBP Heathrow Stansted Total
December 2011 12,490.2 1,359.5 13,849.7
September 2012 13,173.8 1,345.0 14,518.8
The increase in the RAB in the first nine months of 2012 reflects the
investments made (GBP865mn), the increase in inflation (GBP280mn) and
the profiling (GBP25mn), partly offset by depreciation during the period
(GBP450mn).
Results January-September 2012
9
NET DEBT
GBP Sep-12 Dec-11 Chg. %
Senior loan facility 587.4 684.4 -14.2
Subordinated 566.7 538.1 5.3
Regulated airports 11,194.8 10,663.4 5.0
Non-regulated airports 340.3 1,035.6 -67.1
Other & adjustments -42.2 -59.5 -29.1
Total 12,647.0 12,862.0 -1.7
In 2012, the financial structure of the debt has been completely
transformed. This intense capital markets activity took the form of bond
issuance of more than GBP3,000mn, enabled the company to extend its
debt maturity profile, increase the number of markets and currencies and
also very significantly reduce its banking exposure.
BOND ISSUANCE AND REFINANCINGS
Since the beginning of 2012, 11 debt placements and issuances has been
made for more than GBP3,000mn in various currencies, rating levels and
formats. The highlights were the bond issues in the USA (USD500mn)
and its inaugural issue in Canada (CAD400mn) as part of its geographical
diversification process that already included issuance in sterling, euros
and Swiss francs.
Amount Maturity Coupon
Class A
CAD400mn 7 years 4.000%
GBP300mn 3 years 3.125%
USD500mn 3 years 2.500%
CHF400mn 5 years 2.500%
EUR700mn 5 years 4.375%
GBP95mn (ILS) 27 years 2.668%
GBP180mn* 10 years 1.650%
EUR50mn* 20 years 4.250% (yield)
EUR50mn* 20 years 4.125% (yield)
Class B
GBP600mn 12 years 7.125%
GBP400mn 8 years 6.000%
(*) Private placement
In June 2012, the credit and liquidity lines were refinanced. There was
high demand for the new loan, in excess of GBP4,000mn and was
subscribed by a group of 17 British and international banks. This high
level of demand allowed the maximum amount of the loan to be
increased to GBP2,750mn, including a GBP2,000 revolving credit
(GBP1,500mn Class A and GBP400mn Class B for investment and
GBP100mn for working capital) and GBP750mn in liquidity lines.
The new loan has a maturity of five years (June 2017) and replaces a
similar credit which matured in August 2013. The margins on the Class A
and Class B tranches are 150bp and 225bp, respectively.
A GBP1,000mn bond maturing in February 2012 was also cancelled and
repaid GBP400mn of the GBP625mn of the Class B loan.
In April 2012, the terms of the Senior loan facility (Formerly known as
Toggle debt) were modified, with the debt changing from perpetual to a
maturity of seven years, and the margin was increased slightly (7.00%
vs. 6.89%). The above all helped Heathrow Holdings gain the flexibility to
pay dividends to its shareholders.
Heathrow Holdings now has a financial structure based principally on
capital markets financing, with only marginal bank financing.
DIVIDENDS
In 2012, Heathrow Holdings started to pay quarterly dividends to its
shareholders since its acquisition in 2006. During the first nine months of
2012, BAA has paid GBP180mn to its shareholders.
DISPOSALS
SALE OF STANSTED AIRPORT
On 26 July 2012, the Court of Appeal refused the request to appeal
against the decision of the Competition Commission. After careful
consideration of this decision, the company decided not to appeal to the
Supreme Court and as a result has started the process of the sale of
Stansted Airport.
SALE OF EDINBURGH AIRPORT
On 23 April 2012, the sale of Edinburgh Airport to GIP was announced for
GBP807.2mn, or 16.7x EBITDA 2011. The proceeds of the sale were used
to repay the non-regulated airports’ bank debt.
Results January-September 2012
10
CONSOLIDATED INCOME STATEMENT
Before Fair
value Adjustments
Fair value Adjustments
Sep-12
Before Fair
value Adjustments
Fair value Adjustments
Sep-11
Revenues 5,652.6
5,652.6 5,515.5
5,515.5
Other income 12.5
12.5 10.4
10.4
Total income 5,665.2
5,665.2 5,525.9
5,525.9
COGS 5,005.6
5,005.6 4,927.8
4,927.8
EBITDA 659.5
659.5 598.1 598.1
EBITDA margin 11.7%
11.7% 10.8%
10.8%
Period depreciation 161.2
161.2 147.2
147.2
EBIT (ex disposals & impairments) 498.3
498.3 450.9 450.9
EBIT margin 8.8%
8.8% 8.2%
8.2%
Disposals & impairments -10.7
-10.7 235.3 235.3
EBIT 487.6
487.6 686.2 686.2
EBIT margin 8.6%
8.6% 12.4%
12.4%
FINANCIAL RESULTS -288.7 17.0 -271.7 -281.2 35.9 -245.3
Financial result from financings of infrastructures projects -212.6
-212.6 -196.1
-196.1
Derivatives, other fair value adjustments & other financial result -4.9 -10.7 -15.6 -3.7 -0.4 -4.1
Financial result from financings of other companies -29.7
-29.7 -76.5
-76.5
Derivatives, other fair value adjustments & other financial result -41.6 27.7 -13.8 -4.8 36.3 31.5
Equity-accounted affiliates 195.2 121.6 316.7 52.9 -31.0 21.9
EBT 394.0 138.6 532.6 457.9 4.9 462.8
Corporate income tax -52.6 -5.4 -58.0 37.5 -10.8 26.8
Net Income from continued operations 341.4 133.2 474.6 495.4 -5.8 489.5
Net income from discontinued operations
CONSOLIDATED NET INCOME 341.4 133.2 474.6 495.4 -5.8 489.5
Minorities 9.4 4.4 13.8 -7.7 0.0 -7.6
NET INCOME ATTRIBUTED 350.8 137.6 488.5 487.7 -5.8 481.9
The principal variations in the consolidation perimeter arising during the financial year are as follows:
Airports division: on 26 October 2011 Ferrovial sold 5.88% of FGP Topco, the holding company for the Heathrow Holdings group. As a result of this transaction, Heathrow Holdings has been consolidated by the equity method since November 2011. For comparative purposes, the results of Heathrow Holdings’s activities have been presented by the equity method for the 2011 financial year.
Results January-September 2012
11
REVENUES
Sep-12 Sep-11 Chg. % Like-for-
Like (%)
Construction 3,168.7 3,143.8 0.8 -0.3
Airports 4.7 6.3 -25.3 8.7
Toll Roads 293.4 300.3 -2.3 -3.5
Services 2,204.1 2,068.1 6.6 3.0
Others -18.3 -3.0 n.s.
Total 5,652.6 5,515.5 2.5 0.5
EBITDA
Sep-12 Sep-11 Chg. % Like-for-Like (%)
Construction 240.7 171.4 40.4 37.0
Airports -15.4 -8.9 -73.7 -22.2
Toll Roads 226.9 222.8 1.8 0.4
Services 216.3 208.4 3.8 0.7
Others -8.8 4.4 n.s.
Total 659.5 598.1 10.3 8.6
DEPRECIATION
This was higher than in the same period last year (+6.0% like for like) at
EUR161mn.
EBIT (before impairments and disposal of fixed assets)
Sep-12 Sep-11 Chg. % Like-for-Like (%)
Construction 210.5 147.4 42.8 39.1
Airports -15.5 -9.4 -64.9 -22.1
Toll Roads 178.3 179.8 -0.8 -2.1
Services 135.8 130.1 4.4 0.3
Others -10.9 2.9 n.s.
Total 498.3 450.9 10.5 8.7
*For purposes of analysis, all the comments referring to EBIT are before
impairments and disposals of fixed assets.
Excluding the foreign exchange impact and changes in the consolidation
perimeter, this would have increased by 8.7%.
IMPAIRMENTS AND DISPOSAL OF FIXED ASSETS
This heading includes the additional impairments made for PNI (a
Budimex subsidiary) to cover that part of the initial investment not
already provisioned.
NET FINANCIAL EXPENSES
Sep-12 Sep-11 Chg. %
Infra projects -212.6 -196.1 -8.4
Other -29.7 -76.5 61.3
Net financial result (financing) -242.3 -272.6 11.1
Infra projects -15.6 -4.1 -277.7
Other -13.8 31.5 -144.0
Derivatives, other fair value adjustments & other financial result
-29.4 27.3 -207.6
Financial Result -271.7 -245.3 -10.8
The financial result increased by 10.8%, due to:
A reduction in financing result of an 11.1%, with an increase of the
financial result from infrastructure projects (due to more debt related to
projects under development), and a significant reduction of expenses
excluding infrastructure, which fell 61% as a reflection of the lower level
of gross debt in 2012 after the corporate debt refinancing in 2011
[EUR791mn was repaid and EUR1,314mn refinanced].
Derivative and others financial results were determined by the stock
performance (less positive than in the same period in 2011), costs of
bank guarantees and foreign exchange impact.
EQUITY ACCOUNTED RESULTS
Sep-12 Sep-11 Chg. %
Construction -0.6 -1.0 42.5
Services 9.5 6.9 37.8
Toll Roads 34.0 24.9 36.2
Airports 273.9 -8.9 n.s.
Total 316.7 21.9 n.s.
The companies consolidated by the equity method made a contribution of
EUR317mn (vs. EUR22mn in the same period in 2011). In 2012 the figure
includes the contributions from the 407-ETR (EUR35mn) and Heathrow
Holdings (EUR274mn), with the latter including the capital gain on the
sale of Edinburgh Airport (EUR100mn), the positive impact of the lower
tax rate (EUR90mn) and EUR120mn for marking the derivatives portfolio
to market.
TAXES
Effective tax rate reached 27%, excluding Equity Accounted (after tax).
NET RESULT
The net result of the first nine months of 2012 reached EUR489mn, vs.
EUR482mn in 2011 (2011 included the results from the sale of Swissport
and the M45 motorway).
Results January-September 2012
12
BALANCE SHEET AND OTHER MAGNITUDES
Sep-12 Dec-11
FIXED AND OTHER NON-CURRENT ASSETS 17,972.7 17,499.8
Consolidation goodwill 1,500.7 1,482.3
Intangible assets 121.4 103.3
Investments in infrastructure projects 6,433.2 5,959.6
Property 40.9 63.7
Plant and Equipment 573.5 627.1
Equity-consolidated companies 5,409.0 5,199.4
Non-current financial assets 1,655.4 1,912.4
Receivables from Infrastructure assets 1,332.6 1,278.9
Financial assets classified as held for sale 0.5 0.5
Restricted Cash and other non-current assets 147.9 389.9
Other receivables 174.4 243.1
Deferred taxes 2,088.4 2,017.8
Derivative financial instruments at fair value 150.2 134.3
CURRENT ASSETS 5,437.5 5,451.5
Assets classified as held for sale 9.0 2.3
Inventories 450.2 426.6
Trade & other receivables 2,503.2 2,672.7
Trade receivable for sales and services 1,979.2 2,083.3
Other receivables 468.0 539.0
Taxes assets on current profits 56.0 50.4
Cash and other financial investments 2,462.8 2,349.1
Infrastructure project companies 237.6 188.4
Restricted Cash 31.9 24.0
Other cash and equivalents 205.7 164.4
Other companies 2,225.2 2,160.8
Derivative financial instruments at fair value 12.3 0.9
TOTAL ASSETS 23,410.2 22,951.3
EQUITY 6,458.5 6,246.4
Capital & reserves attributable to the Company´s equity holders 6,447.4 6,113.3
Minority interest 11.1 133.1
DEFERRED INCOME 336.5 292.1
NON-CURRENT LIABILITIES 11,305.7 10,806.4
Pension provisions 101.6 110.5
Other non current provisions 1,035.7 1,010.1
Financial borrowings 6,987.5 6,694.8
Financial borrowings on infrastructure projects 5,726.4 5,503.0
Financial borrowings other companies 1,261.1 1,191.8
Other borrowings 201.2 179.3
Deferred taxes 1,339.6 1,297.8
Derivative financial instruments at fair value 1,640.1 1,513.9
CURRENT LIABILITIES 5,309.5 5,606.4
Financial borrowings 1,232.4 1,214.4
Financial borrowings on infrastructure projects 1,189.4 1,145.0
Financial borrowings other companies 43.0 69.4
Derivative financial instruments at fair value 56.1 7.3
Trade and other payables 3,511.8 3,882.3
Trades and payables 2,932.0 3,222.8
Deferred tax liabilities 87.9 51.1
Other liabilities 491.8 608.3
Trade provisions 509.2 502.4
TOTAL LIABILITIES & EQUITY 23,410.2 22,951.3
Balance sheet 2011 comparative information has been revised according to p.49 of IFRS 3, as the provisional accounting of PNI business combination has been adjusted within the one year period after acquisition date as required by the above mentioned IFRS
Results January-September 2012
13
NET CONSOLIDATED DEBT
At EUR898mn, the net cash position excluding infrastructure projects is
similar to the situation in December 2011 (EUR907mn). The variation vs.
December 2011 is explained by the net investments in the period (-
EUR191mn), dividend payments (-EUR203mn) and the seasonality of
payments, which include payments from local and regional
administrations, and the cash generation during the first half of the year.
Ferrovial was also in receipt of dividends from Toll roads and Airports
totalling EUR207mn.
Net project debt reached EUR6,508mn. This variation was principally due
by the investments made in infrastructure.
The group’s net debt reached EUR5,609mn.
This figure includes EUR1,825mn of net debt related to motorways under
construction (the NTE, the LBJ and the SH130). It also includes
EUR1,099mn related to the R4 and Ocaña-La Roda radial motorways that
have filed for investor protection.
Sep-12 Dec-11
NCP ex-infrastructures projects 898.4 906.6
Toll roads -6,140.6 -5,691.9
Others -367.0 -385.6
NCP infrastructures projects -6,507.6 -6,077.5
Net Cash Position -5,609.2 -5,170.9
INVESTMENT IN NEW MOTORWAYS
YTD Total
SH130 7.1 97.6
NTE 27.7 90.7
LBJ 48.8 121.3
Total 83.6 309.6
CORPORATE CREDIT RATING
In August 2011 for the first time, the rating agencies Standard&Poor’s
and Fitch Ratings gave an opinion on Ferrovial’s credit rating, which in
both cases was in the Investment Grade category.
Both agencies affirmed these ratings in the second quarter of 2012:
Agency Rating Outlook
S&P BBB- Stable
FITCH BBB- Stable
Results January-September 2012
14
APPENDIX I: SIGNIFICANT EVENTS
BAA issues a press release regarding the Court of Appeal’s
decision to reject BAA’s appeals against the Competition
Commission’s resolutions that require the sale of Stansted
Airport.
(1 February 2012)
BAA announces the sale of Edinburgh Airport.
(23 April 2012)
BAA announces that it has agreed the sale of 100% of its stake in
Edinburgh Airport Limited to Global Infrastructure Partners ("GIP") for
GBP807.2mn.
Colin Matthews, chief executive of BAA, said: "Edinburgh Airport and
its team have been part of BAA for a long time and we are proud of
its achievements. We wish the new owners every success and are
confident the airport will continue to flourish. BAA will continue to
focus on improving passengers' journeys at Heathrow and its other
airports".
Budimex announces a write-down of its stake in PNI.
(28 June 2012)
The Budimex Board announced its decision to write down the value of
its stake in PNI by PLN182,267mn.
Budimex S.A. acquired 100% of PNI for PLN225,017mn. The current
valuation is the consequence of the recognition of the loss of the
contracts awarded before the acquisition date and whose execution
period will end in 2014.
Budimex will recognise the impairment to its stakes in the company in
the 2011 financial year and adjust the results of the previous years.
The consequence of the current valuation of the company on the
consolidated financial statements of the Budimex group will be a
PLN180,017mn reduction in the attributable goodwill at the acquisition
date. The difference between the two figures comprises the
capitalised transaction costs in the individual financial statements of
Budimex SA.
As a consequence of the above-mentioned losses, there is a
requirement to allocate the PLN40,000,000 arising on the capital
increase dated 14 June 2012 to the company’s current activities rather
than to PNI’s investments in material fixed assets as had been
originally intended.
Additionally, independently of the actions already undertaken,
including the very successful voluntary redundancy programme,
Budimex S.A. intends to introduce a recovery programme at PNI
which will include reorganising PNI’s structures, changing
management methods and minimising the losses on unprofitable
contracts that the company is currently executing.
The introduction of the recovery programme is a demonstration of the
conviction of the Budimex group’s management that the programme
is a viable exercise. The Budimex Board is convinced that the success
of the action taken will confirm that its long-term strategy in the
railway segment is correct, as is its pioneering participation in the
macroeconomic process of privatisation of this segment of the Polish
economy.
Ferrovial reaches an agreement to sell 10.62% of FGP Topco
Ltd. (the BAA holding company).
(17 August 2012)
Ferrovial, which indirectly owns 49.99% de BAA Ltd. (BAA), reaches
an agreement to sell 10.62% of FGP Topco Ltd. (the BAA holding
company) to Qatar Holding LLC for GBP478mn (EUR607mn). As part
of the same transaction, other shareholders in FGP Topco will sell
9.38% at the same price per share, taking the total value of the
transaction to GBP900mn (EUR1,144mn). As a consequence, Qatar
Holding LLC will indirectly own 20% of BAA, and Ferrovial’s indirect
holding in BAA will fall to 39.37%. The transaction is subject to the
approval of the European competition authorities and the deal is
expected to be closed before year-end.
The managers of the Radial 4 have agreed to seek creditor
protection.
(14 September 2012)
The Boards of Autopista Madrid Sur Concesionaria Española, S.A. and
Inversora de Autopistas del Sur, S.L., the management companies of
Madrid’s Radial 4, in which Ferrovial, S.A., Sacyr Vallehermoso, S.A.
and Caja Castilla La Mancha Corporación, S.A., have indirect stakes,
have agreed to file for court protection from their creditors.
The Radial 4 project has been directly affected by exogenous factors
(substantially lower traffic than expected, higher expropriation costs
than expected, economic crisis, etc.) that under current conditions
prevent the concession from meeting various payment commitments
to expropriated landowners and financial entities. An important factor
in this decision has been that the intended potential legal supports for
the concession were not correctly implemented by the contracting
entity.
In view of all the above, the said companies have taken the above-
mentioned and legally binding decision, in the confidence that a
solution will be reached within the coming months.
As noted in the group’s consolidated 2011 report and accounts, the
investment relative to this project are already fully-provisioned. There
is not expected to be any significant impact on the group’s accounts
whatsoever.
Results January-September 2012
15
EVENTS AFTER THE CLOSE
The management companies of the AP-36 Ocaña–La Roda
have agreed to file for creditor protection.
(19 October 2012)
Autopista Madrid Levante Concesionaria Española, S.A.U. and
Inversora de Autopistas de Levante, S.L., the management companies
for the toll motorway AP-36 Ocaña–La Roda, indirectly owned by
Ferrovial, S.A. (55%) together with Sacyr Vallehermoso, S.A. (40%)
and Caja de Ahorros y Monte de Piedad de Gipuzkoa y San Sebastián,
S.A. (5%), have agreed to seek creditor protection. The application
has been made to the competent court.
The AP-36 motorway has been directly affected by exogenous factors
(substantially lower traffic than expected, economic crisis and
increased capacity on alternative routes, etc.), making it the
impossibility of meeting various payment commitments to financial
entities imminent.
An important factor in this decision has been that the intended
potential legal supports for the concession were not correctly
implemented by the contracting entity.
In view of all the above, the said companies have taken the above-
mentioned, in the confidence that a solution will be reached within the
coming months.
The investment relating to this project was fully-provisioned in the
group’s consolidated 2011 accounts. There is not expected to be any
significant impact on the group’s 2012 accounts whatsoever.
Results January-September 2012
16
APPENDIX II: PRINCIPAL CONTRACT AWARDS
CONSTRUCTION
407 East Extension, Canada.
Padornelo Tunnel, Adif Infraestructuras, Spain.
T3 integrated baggage, design, build and integration, Heathrow
Airport, UK.
Espiño Tunnel, Adif Infraestructuras, Spain.
Assembly Olmedo-Pedralba railway, Adif Infraestructuras, Spain.
Terminal 2b Stand and Taxilanes, Heathrow, UK.
Construction of PR9 Ponce, Puerto Rico.
250 Interbigeco residential units, Alcalá youth housing, Spain.
Cerrejón Port, Carbonera del Cerrejón, Colombia.
Electricity interconnection France-Spain, France.
Leganés Tecnology Urbanization, Spain.
Refurbishment of Torre Pelli offices, Seville, Spain.
Resurfacing work, PR-30, Puerto Rico.
Mto. Idam Valdelentisco, Acuamed, Spain.
Tiemblo-Cebreros gas pipeline, Spain.
Gornal sports complex, Hospitalet municipality, Spain.
Extensions to San Jose ss.cc. College, Spain.
67 residential units in Valdebebas, Madrid, Spain.
Assembly of Sagrera-Mollet railway, Adif Infraestructuras, Spain.
Port works at Grimaldi Terminal, Barcelona, Spain.
Emerg. Highways PR-1 and PR-842, Puerto Rico.
Building at Universidad Autónoma, Barcelona, Spain.
Segovia Norte gas pipeline, Spain.
84 residential units in Dehesa Vieja, Spain.
Repairs to Ulea Tunnel, Confederación Hidrográfica del Segura, Spain.
51 residential units in Valdebebas, Madrid, Spain.
Thermal dryer in Siedlce, Polonia.
Castresoler-Felanitx gas pipeline for Endesa, Spain.
Moralets II chimney for Endesa Generation, Spain.
Brisa No De Soure, Brisa Concessao Rodoviaria, Portugal.
80 residential units in Parla East, Spain.
Water supply, municipality of Pombal, Portugal.
BUDIMEX
Highway as far as the Dabrowica junction, Lublinie, Poland.
C/Kruczkowskiego Complex, Warsaw, Powisle Park, Poland.
Waste treatment plant, Bialystok, Poland.
Remodelling a tramline in Cracow, Poland.
Stawiski ring road, Poland.
Road widening, Voivodía nº 892 Zagorz - Komancza, Poland.
Neptun Office Centre, Bnn, Poland.
Coastal defences, Darlowo, Poland.
Teaching centre at the Chemistry Faculty, Politechnika Poznanska,
Poland.
Highway Voivodía 822 Lublin – Swidni Airport, Poland.
Parking lot in Hala Stulecia, Poland.
Affected services, walkways and parking at Lublin Terminal, Poland.
Torun Technology Park, Tarr Centrum Innowacyjnosci, Poland.
Zoliborz Office Building, Szamocka, Poland.
Warsaw University rehabilitation centre, Poland.
Estonia - Narva – energy blocks, Alstom Estonia, Poland.
Novarka - Ucrania, Novarka - Vinci, Poland.
Infrastructure for the Economic Zone, Zarzad Dróg I Mostów W
Lublinie, Poland.
Smolna Street urbanization Phase II, Budimex Nieruchomosci, Poland.
Ewa Peninsular in the port of Szczecin, Poland.
Vte Mielec on Highway 985, Poland.
Construction work in June 2012, Germany.
Liquefied gas terminal in Swinoujscie, Poland.
WEBBER
US 290 Harris City Const 5 ML, TxDOT, USA.
US-59 Angelina, TxDOT, USA.
Rockwall County IH30, TxDOT, USA.
Homestead Grade Separation, City of Houston, USA.
SERVICES
CESPA
Contract award for two waste treatment plants for the Juan el Grande
and Salto del Negro environmental complexes in the Canary Islands.
Contract renewal for highway cleading and urban waste collection for
the municipality of San Vicente del Raspeig.
Renewal of contract for green space maintenance and cleaning in
various districts in Madrid (Centre, Arganzuela, Retiro, Salamanca,
Tetuán, Chamartín, Chamberí, Vallecas, Moratalaz and Vicálvaro).
Extension of highway cleaning and urban waste collection contractfor
the municipality of Getxo.
Extension of contract for highway cleaning, urban waste and solid
waste collection for the city of Guadalajara.
Contract renewal for the industrial management of metal scrap and
waste at the Ford vehicle plant.
FERROSER
Ministry of Development contract award for the maintenance of
various sections of the State highway network (the cities of Zaragoza,
Madrid, Valencia, Salamanca, Segovia, Valladolid and Badajoz).
New contract award for telephone services for the Madrid Town Hall.
New contract award for the integrated building management for the
Universidad Europea de Madrid.
Contract extension for cleaning at the La Paz university hospital.
Ongoing energy services for the external lighting for the municipality
of Soto del Real, Madrid.
Delphi maintenance renewal, Sant Cugat.
Reina Sofía Hospital cleaning services, Murcia.
AMEY
Infrastructure maintenance services for the County of Sheffiefd.
Installation contract for electricity supply to railways in Norfolk.
Contract for maintenance and cleaning services for the Home Office
building.
Extension of infrastructure maintenance contract for the County of
Hampshire.
Infrastructure maintenance for the County of Calderdale.
Consultancy contract for maintenance of general traffic services in
Scotland.
Various consultancy and technical advisory contracts for railway
signalling.
Results January-September 2012
17
APPENDIX III: EXCHANGE-RATE MOVEMENTS
Exchange-rate Last
(Balance sheet) Change 12/11
Exchange-rate Mean (P&L)
Change 12/11
GBP 0.7971 -4.6% 0.8112 -7.3%
US Dollar 1.2876 -0.6% 1.2862 -9.3%
Canadian Dollar 1.2666 -3.9% 1.2861 -7.2%
Polish Zloty 4.1133 -7.8% 4.1872 3.7%
Exchange rates are expressed in units of currency per euro, with negative variations signifying euro depreciation and positive variations
euro appreciation.
INVESTOR RELATIONS DEPARTMENT
ADDRESS: PRÍNCIPE DE VERGARA 135 - 28002 MADRID
TELEPHONE: +34 91 586 25 65
FAX: +34 91 586 26 89
E-MAIL: [email protected]
WEB: HTTP://WWW.FERROVIAL.COM
Important information
This document contains statements regarding the Company’s future intentions, expectations and forecasts at the time of writing.
These statements are based on projections and financial estimates with underlying assumptions, announcements relating to plans,
objectives and expectations that refer to various aspects, including the growth of the various lines of business and the global business,
market share, the Company’s results and other aspects relating to its activities and situation.
These estimates, projections and forecasts are not in themselves guarantees of future performance as they are subject to risks,
uncertainties and other important factors that could result in the development and final results differing from those contained in these
estimates, projections and forecasts.
This should be taken into account by all individuals or institutions that might have to take decisions or form or transmit opinions
relating to stocks and shares issued by the Company, and in particular, by the analysts and investors who consult this document. All
interested parties are invited to consult the documentation and information publicly available or filed by the Company with stock
market supervisory authorities and, in particular, the information filed with the CNMV (the Spanish stock market regulator).